THE SPECIAL EXEMPTIONS Act

1. THE SPECIAL EXEMPTIONSAct Coming this November to a California ballot box near you!

2. STOP the Special Exemptions ActIt’s not what it seems What the initiative claims to do: • The so-called “Stop Special Interest Money Now Act” purports to be a “simple, fair and balanced solution…limiting both corporate and union political giving.” • Supporters claim that the measure: • bans both corporate and union contributions to candidates • prohibits campaign contributions from government contractors • prohibits corporations and unions from collecting political funds from employees and members via voluntary payroll deduction • makes all employee political contributions by any other means strictly voluntary, requiring annual written consent. Sounds fair and balanced, right?

3. STOP the Special Exemptions ActIt’s not what it seems The Special Exemptions Act was intentionally written to: • create special exemptions for billionaire businessmen, giving them even more political power to write their own set of rules. • exempt secretive Super PACs, which can raise unlimited amounts of money from corporate special interests and billionaire businessmen to support their candidates or defeat their enemies. • do nothing to stop anonymous donors from influencing elections.

4. STOP the Special Exemptions ActIt’s not what it seems – on prohibiting candidate contributions • It’s not going to solve Sacramento’s problems, because it was intentionally written to exempt many companies like Wall Street investment firms, hedge funds, real estate developers, insurance companies and businesses that are set up as LLCs, LLPs, sole proprietorships and other alternative structures - all of whom can still give directly to candidates. • And the measure does nothing to prevent unlimited contributions to Independent Expenditures campaigns and Super PACS that can support or oppose candidates

5. STOP the Special Exemptions ActIt’s not what it seems – on payroll deduction • It’s not a balanced approach. It unfairly singles out and limits the voices of teachers, our local nurses and the firefighters who keep us safe. • The Special Exemptions Act says it will stop corporations and unions from collecting political funds through payroll deductions -- but corporations almost never use payroll deductions to collect funds for political purposes; they use their corporate profits. Unions almost exclusively use payroll deductions to raise money for political purposes. • Corporations already outspend unions 15 – 1 in political expenditures

6. STOP the Special Exemptions ActIt’s not what it seems – on employee political contributions • Supporters of the initiative say that it protects union members from having their dues used towards politicians and issues they may not support. But union members already have the option to “opt out” and not have their dues go towards politics. • It does add a new requirement that even voluntary contributions from teachers, nurses, firefighters and other union members must be accompanied by annual, written permission to use the funds. This sets up an impractical and unnecessary hurdle for union members to be able to participate in the political process.

7. STOP the Special Exemptions ActIt’s not what it seems Who is Prohibited: • Unions representing working men and women • Some Companies Who is Exempted from the Prohibition: • Hedge Funds • Billionaires • Limited Partnerships • Limited Liability Partnerships (LLPs) • Limited Liability Companies (LLCs) • Real Estate Investment Trusts (REITs) • Business Trusts • Indian Tribes • Sole Proprietorships Prohibition on Contributions to Candidates or Candidate Controlled Committees

8. STOP the Special Exemptions ActIt’s not what it seems Who is Prohibited: • Some Companies** • Unions representing working men and women • Government Contractors • Government Employers ** less than 1% of corporations use payroll deduction for political use – the vast majority use corporate profits Who is Exempted from the Prohibition: • Insurance Companies • Hedge Funds • Limited Partnerships • Limited Liability Partnerships (LLPs) • Limited Liability Companies (LLCs) • Real Estate Investment Trusts (REITs) • Business Trusts • Indian Tribes • Sole Proprietorships • Charities Prohibition on Payroll Deduction Used for Political Purposes

9. STOP the Special Exemptions ActIt’s not what it seems Who is Prohibited: • Government Contractors • Government Contractor PACs Who is Exempted from the Prohibition: • Lobbyists for Government Contractors • Lawyers for Government Contractors • CEOs and Officers of Government Contractors • Staff of Government Contractors • PACs sponsored by Government Contractor Trade Associations Prohibition on Government Contractor Contributions

10. STOP the Special Exemptions ActIt’s not what it seems Here’s what others are saying: • “…dripping with cynicism” – Sacramento Bee 12-22-11 • “…a phony veneer of fairness…one-sided and biased” – Long Beach Press Telegram 8-21-11 • “…would harm their union opponents more than it would harm business interests” – OC Register 8-11-11 • “…would just expand unaccountable independent expenditure committees, the super-PACs” – LA Times 4-26-12

11. STOP the Special Exemptions ActIt’s not what it seems Who’s behind it: • Wealthy corporate interests • Orange County millionaires • Anti-union activists • Howard Jarvis Taxpayers Association • Lincoln Club (backers of Citizens United case)

12. STOP the Special Exemptions ActIt’s not what it seems If the Special Exemptions Act were to pass, it would effectively silence the voice of union members while giving corporate special interests and billionaire businessmen free rein to exert even more influence over our political system, and that hurts all of us.

13. STOP the Special Exemptions ActIt’s not what it seems What We Need to Do to Beat It: • Build a broad coalition of partners to spread the word to their base • Statewide direct voter contact: voter persuasion and GOTV campaign to targeted voters • Statewide paid and earned media – TV, radio, direct mail and social media